THE WOOF OF WALL STREET

[SPORTYNORTY]

STOCK LOSSES:

I shall weigh in here, since you asked. There are only 3 reasons, by my vantage point with which to lock in losses on a stock/equity:

1) You need the money to invest in something else.

2) You have made so much money throughout the year, that taking the loss to mitigate your overall tax liability makes financial sense.

3) There has been a material change in the circumstances that initially caused you to invest to begin with. Example: Company announces a 10,000 for 1 Reverse Split. The company is telling you that they could care less about you, the share structure or the ramifications of taking such dramatic actions. You will eventually be obliterated to nothing.

***This is why one of the first things I do when dd'ing a stock, is look at the share structure and history of the ticker on OTC Markets. How many times has the company reverse split before? There are some penny stocks that are only in the business of printing shares, THAT IS THEIR BUSINESS. ****

Just because a stock underperforms, is in and of itself, not reason enough, by my metrics, to sell. You must also be cognizant of the 30 day wash rule.

Hope that helps.